Report No. CC-583          COMMON CARRIER ACTION             August 4, 1994

       TELEFORNICA LARGA DISTANCIA DE PUERTO RICO GRANTED AUTHORITY
            TO PARTICIPATE IN THE LANDING AND OPERATION OF THE
         COLUMBUS II AND AMERICAS-I CABLE SYSTEMS, AND TO ACQUIRE 
                AND OPERATE FACILITIES FOR DIRECT SERVICE 
                    TO THE BAHAMAS AND THE NETHERLANDS

     The Commission has granted the applications filed by
Telefonica Larga Distancia de Puerto Rico, Inc., (TLD), for
authority to participate in the construction of, acquisition of,
capacity in, and operation of the COLUMBUS II and AMERICA-1 Cable
Systems; but deferred ruling on TLD's request for authority to
acquire capacity in the COLUMBUS II Cable System for service to
Spain.  In the same order, the Commission also granted TLD's
applications for authority to acquire and operate facilities for
direct service to the Bahamas and the Netherlands.  

     The COLUMBUS II Cable System connects cable stations in
Florida, Mexico, U.S. Virgin Islands, Portugal, Spain, and Italy. 
The AMERICAS-1 Cable System connects cable stations in Florida,
U.S. Virgin Islands, Trinidad, Venezuela, and Brazil. TLD's
proposed combined ownership interest in  both cables' 63 whole
MIUs (Minimum Investment Units - approximately 30 64-kbps voice
paths) to the U.S. Mainland, two joint MIUs to Hawaii, three
joint MIUs to Spain, three joint MIUs to Canada, three joint MIUs
to Venezuela, two joint MIUs to Mexico, one joint MIU to Germany,
one joint MIU to Italy, one whole MIU to Portugal, one joint MIU
to Brazil and one joint MIU to Trinidad.  These facilities would
constitute for TLD an approximately 1.47 percent equity interest
in COLUMBUS II and a 1.72 percent equity interest in AMERICAS-1.

     TLD will provide direct service to the Bahamas via six
circuits on the TCS-1 and Florida-Bahamas Cable System, and to
the Netherlands via six half-circuits over the INTELSAT
satellite.

     The Commission said that a limited expansion of TLD's
authority is in the public interest and is unlikely to lead to
abuse of market power or anticompetitive conduct.  The Commission
further concluded that existing regulatory safeguards imposed on
TLD, because it is owned by Telefornica de Espana, are sufficient
to prevent potential discriminatory practices that would damage
effective competition. 

                                  (over)

                                    -2-

     The Commission, however, deferred ruling on TLD's proposed
ownership interest in cable circuits to Spain.  The Commission
stated that under the Cable Landing License Act, the Commission
cannot consider the issues associated with TLD's request for
circuits to Spain until the Commission receives from the State
Department its comments on this aspect of TLD's application.

     The Commission said that the grant of these applications
would encourage competition in the provision of U.S.
international services by expanding the number of carriers
offering direct facilities-based services from the Puerto Rico-
U.S. Virgin Islands market to the Netherlands and the Bahamas. 
The Commission also said that grant would enable TLD to operate
more efficiently and effectively, thus encouraging lower rates
and improved service for the public.

     Action by the Commission July 29, 1994, by Memorandum
Opinion, Order, Authorization and Certificate (FCC 94-197). 
Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong.

                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 418-0500.
     Common Carrier Bureau contact: Troy F. Tanner at (202) 418-
1468 or Susan O'Connell at (202) 418-1484.